Cryptologic CEO Resigns

Submitted by Evan on Thu, 2010-08-12 at 17:00

Cryptologic was previously one of the most prominent online gambling operators in the world, but the company seems to have fallen on hard times. As many online casino companies begin to recover from the global recession, Cryptologic still seems to be suffering, causing it’s profits to continue to decline and its CEO to resign.

In the first quarter of this year, Cryptologic raked in a total of $7.6 million, a seemingly good sign for the company. Unfortunately, the second quarter was not so prosperous, as its earnings dropped to $6.7. Financial analysts believe this is due to accounting errors that the company encountered when dealing with pre-paid royalties.

While the income earned from branded games increased from $1.3 million to $1.5 million, poker and other casino games’ revenues dropped from $1.3 to $0.7 million.

Shortly after the announcement of the second-quarter results, CEO Brian Hadfield stepped down from his position, which he had held for 2 years. The resignation will be effective immediately, as Chairman David Gavagan steps in to take his place.

The company has also decided to hire Huw Spiers as its Chief Financial Officer. He is well-known in the financial sector and brings over 20 years experience to Cryptologic. Big changes are in store, but is it too late to save Cryptologic? It is hoped that the company will recover and continue to resume creating innovative new games for the industry.